Brazilian antitrust court going after Miriri Alimentos e Bioenergia for alleged ethanol collusion

In Brazil, the General Superintendence of the Administrative Council for Economic Defense (SG/Cade) recommended in an order signed last Friday the prosecution of Miriri Alimentos e Bioenergia and its CEO for the practice of inviting cartelization in the national market for the production and sale of ethanol.

Miriri Alimentos e Bioenergia is one of the main players in the sugar-energy segment in the Northeast, and operates in the production and processing of sugarcane, producing ethanol, sugar and distillates on an industrial scale. 

According to the investigation, during an event that had the participation of several agents in the ethanol production and distribution chain, the company’s CEO called on those present to strategically control the offer of the sector’s products.

The SG/Cade understood that this type of conduct is harmful and can artificially change the characteristics of the market, in order to leverage its power of action and influence competitors to act in a convergent manner in the sector, to the detriment of competition and consumers.

The case is now being judged by Cade’s Court, which is responsible for the final decision, which may impose fines of up to 20% of its revenues obtained in the line of activity in the year prior to the filing of the administrative proceeding to the eventually condemned company. In the case of the administrator, the legislation provides for a fine of 1% to 20% of that applied to the company.